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1. Company Snapshot

1.a. Company Description

LightPath Technologies, Inc.designs, develops, manufactures, and distributes optical components and assemblies.The company offers precision molded glass aspheric optics, molded and diamond-turned infrared aspheric lenses, and other optical components used to produce products that manipulate light.


Its products are used in defense products, medical devices, laser aided industrial tools, automotive safety applications, barcode scanners, optical data storage, hybrid fiber coax datacom, telecommunications, machine vision and sensors, and other industries.The company sells its products directly to customers in North America, Europe, and Asia, as well as through distributors and catalogs in the United States and internationally.LightPath Technologies, Inc.


was founded in 1985 and is headquartered in Orlando, Florida.

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1.b. Last Insights on LPTH

LightPath Technologies' recent performance was driven by robust demand for its Germanium-Free optics, which fueled meaningful backlog growth with defense and public safety customers. The company secured significant purchase orders, including an $18.2 million order and a $22.1 million follow-on order, for advanced infrared camera systems. Additionally, the company's transition to a vertically integrated solutions provider, facilitated by the G5 Infrared acquisition, is expected to expand margins and open large-scale program opportunities.

1.c. Company Highlights

2. LightPath's Strong Q1 FY2026 Earnings: A Leap Towards Vertical Integration

LightPath Technologies reported a robust financial performance for the first quarter of fiscal 2026, with revenue surging 79% to $15.1 million. Gross profit increased 58% to $4.5 million, driven by the company's strategic shift towards becoming a vertically integrated provider of high-value infrared optics and camera systems. The net loss narrowed to $2.9 million, and adjusted EBITDA was $0.4 million positive, indicating a significant improvement in profitability. The actual EPS loss of $-0.05 was better than the estimated loss of $-0.06.

Publication Date: Nov -21

📋 Highlights
  • Vertical Integration Success:: Shift to end-to-end infrared systems boosted orders and $90M backlog, with >2/3 in systems/subsystems.
  • Revenue & Profit Growth:: Revenue surged 79% to $15.1M; adjusted EBITDA positive at $0.4M despite $2.9M net loss.
  • Strategic Acquisitions:: G5 Infrared and Visimid acquisitions solidified leadership in Western-manufactured infrared systems.
  • Proprietary Tech Edge:: BlackDiamond chalcogenide glass secured $18.2M and $22.1M contracts, replacing supply-risky germanium.
  • Capital Infusion & Expansion:: $8M investment from Ondas/Unusual Machines targets uncooled infrared drones, with 7-8 $10M+ pipeline opportunities.

Operational Highlights

The company's strategic transformation has led to record orders and a growing systems backlog. The backlog has grown to approximately $90 million, with more than 2/3 in systems and subsystems, validating the success of their move up the value chain. As CEO Sam Rubin highlighted, "We're nearly done with one redesign and working on others, but priority is on short-term revenue delivery," underscoring the company's focus on executing against a robust multiyear opportunity set.

Valuation and Growth Prospects

With a P/S Ratio of 7.55 and an expected revenue growth of 65.3% next year, LightPath's valuation appears reasonable. The EV/EBITDA ratio of -27.21 indicates that the market is pricing in significant future profitability. Analysts' estimates suggest that the company is poised for durable growth and increased profitability, driven by its differentiated technology position and strong customer engagement.

Margin Expansion and Capacity Building

CFO Al Miranda expects margin expansion in the coming quarters, driven by investments in manufacturing and a detailed go-to-market strategy. The company is scaling production to meet demand across defense, public safety, and industrial end markets. As Miranda noted, "We're satisfied with the Q1 result and expect to step up to 35% gross margin by the end of the fiscal year."

Pipeline Opportunities and Future Growth

LightPath has a strong pipeline of opportunities, with 7-8 potential $10 million-plus annual revenue opportunities, primarily around BlackDiamond glass and counter-UAS programs. The company's focus on uncooled infrared solutions for drone applications is expected to drive future growth. With a robust backlog and a growing pipeline, LightPath is well-positioned to execute against its growth plans.

3. NewsRoom

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Stoneridge (NYSE:SRI) vs. LightPath Technologies (NASDAQ:LPTH) Head-To-Head Survey

Nov -18

Source: defenseworld.net

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LightPath Stock Eyes 50% Upside on Defense Demand Surge

Nov -14

Source: marketbeat.com

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LightPath Technologies, Inc. (LPTH) Q1 2026 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

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LightPath Technologies, Inc. (LPTH) Reports Q1 Loss, Beats Revenue Estimates

Nov -11

Source: zacks.com

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LightPath Stock Rallies After Q1 Earnings: Here's Why

Nov -11

Source: benzinga.com

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LightPath Technologies Reports Fiscal 2026 First Quarter Financial Results

Nov -11

Source: prnewswire.com

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LightPath Appoints Israel Piergiovanni as Vice President of Manufacturing to Support Near-Term Growth Initiatives

Nov -10

Source: prnewswire.com

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LightPath Technologies to Host First Quarter Fiscal 2026 Earnings Call on November 11 at 5:00 p.m. Eastern Time

Nov -04

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.70%)

6. Segments

Infrared

Expected Growth: 10%

Infrared from LightPath Technologies, Inc. growth driven by increasing demand for thermal imaging in industrial, medical, and military applications, coupled with advancements in IR technology, expanding use in autonomous vehicles, and growing need for predictive maintenance and quality control.

Precision Molded Optics

Expected Growth: 12%

LightPath Technologies' Precision Molded Optics growth is driven by increasing demand for high-precision optical components in 5G, IoT, and autonomous vehicles. The company's proprietary molding technology and cost-effective manufacturing process enable high-volume production, supporting growth in the optics industry. Additionally, the trend towards miniaturization and increased functionality in consumer electronics and industrial applications fuels demand for precision optics.

Specialty

Expected Growth: 9%

LightPath Technologies' Specialty segment growth is driven by increasing demand for high-power laser optics, expansion in 5G and telecom markets, and growing adoption of infrared and thermal imaging technologies. Additionally, the company's strategic acquisitions and investments in research and development have enhanced its product offerings and capabilities, contributing to its 9% growth.

7. Detailed Products

Aspheric Lenses

LightPath Technologies, Inc. offers a wide range of aspheric lenses that are designed to minimize spherical aberration and provide high-quality imaging. These lenses are used in various applications, including laser systems, spectroscopy, and optical testing.

Gradium Lenses

Gradium lenses are designed to provide a gradual change in refractive index, allowing for the correction of aberrations and distortion in optical systems. LightPath Technologies, Inc. offers a range of Gradum lenses for various applications.

Micro-Optics

LightPath Technologies, Inc. offers a range of micro-optics products, including beam splitters, optical filters, and micro-lenses. These products are designed for use in various applications, including spectroscopy, microscopy, and optical communication systems.

Collimators

LightPath Technologies, Inc. offers a range of collimators that are designed to provide a parallel beam of light. These products are used in various applications, including laser systems, spectroscopy, and optical testing.

Optical Isolators

LightPath Technologies, Inc. offers a range of optical isolators that are designed to prevent back reflections in optical systems. These products are used in various applications, including laser systems, spectroscopy, and optical communication systems.

Infrared Optics

LightPath Technologies, Inc. offers a range of infrared optics products, including lenses, mirrors, and beam splitters. These products are designed for use in various applications, including thermal imaging, spectroscopy, and optical sensing.

8. LightPath Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for LightPath Technologies, Inc. is medium due to the availability of alternative fiber-based solutions.

Bargaining Power Of Customers

The bargaining power of customers for LightPath Technologies, Inc. is low due to the company's strong relationships with its customers and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for LightPath Technologies, Inc. is medium due to the presence of multiple suppliers in the market, but the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants for LightPath Technologies, Inc. is low due to the high barriers to entry in the fiber-optic industry, including the need for significant capital investment and technical expertise.

Intensity Of Rivalry

The intensity of rivalry for LightPath Technologies, Inc. is high due to the competitive nature of the fiber-optic industry, with multiple players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.62%
Debt Cost 3.95%
Equity Weight 74.38%
Equity Cost 11.02%
WACC 9.21%
Leverage 34.44%

11. Quality Control: LightPath Technologies, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Data I/O

A-Score: 4.6/10

Value: 8.4

Growth: 1.4

Quality: 4.7

Yield: 0.0

Momentum: 8.0

Volatility: 5.0

1-Year Total Return ->

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Wrap Tech

A-Score: 4.2/10

Value: 6.0

Growth: 5.1

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

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CPS Technologies

A-Score: 4.1/10

Value: 7.2

Growth: 0.8

Quality: 4.3

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
LightPath Technologies

A-Score: 3.6/10

Value: 6.0

Growth: 0.6

Quality: 3.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
LGL Group

A-Score: 3.4/10

Value: 3.8

Growth: 2.3

Quality: 6.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Rogers

A-Score: 3.2/10

Value: 6.5

Growth: 2.7

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.8$

Current Price

8.8$

Potential

-0.00%

Expected Cash-Flows